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How does the creditor conflict affect bond IPO underpricing?

Title:

How does the creditor conflict affect bond IPO underpricing?

Tang, Huayi (2017) How does the creditor conflict affect bond IPO underpricing? Masters thesis, Concordia University.

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Abstract

In this paper, we find that the conflict of interest between loan holders and bondholders is positively related to bond IPO underpricing, which serves as compensation to the initial bond investors. We construct four proxies for the conflict between loan holders and bondholders, namely a loan covenant index, the outstanding loan amount, the number of lead banks, and the loan remaining maturity. Our empirical tests show that all four variables are positively related to bond IPO underpricing, indicating that the loan structure of firms has a real impact on the pricing of their bond IPOs.

Divisions:Concordia University > John Molson School of Business > Finance
Item Type:Thesis (Masters)
Authors:Tang, Huayi
Institution:Concordia University
Degree Name:M. Sc.
Program:Business Administration (Finance specialization)
Date:10 July 2017
Thesis Supervisor(s):Wang, Yuan
ID Code:982671
Deposited By: HUAYI TANG
Deposited On:17 Nov 2017 15:15
Last Modified:18 Jan 2018 17:55
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